District Commences Drilling at the Osterkalen Mineral License within the Alum Shale Properties in Sweden

Executive Summary

• District Metals Corp. has commenced diamond drilling on the Österkälen Mineral License, targeting prospective Alum Shale mineralization in central Sweden.
• The program focuses on a large, untested MobileMT conductive anomaly (~8 km x 3.5 km) that coincides with geochemical soil anomalies interpreted as favorable Alum Shale stratigraphy.
• Drilling will be guided by real-time geological and radiometric observations, forming part of the company's approved 2026 exploration budget of 5,000 to 7,000 meters across the Viken and Alum Shale Properties.

Key Details

• Drilling Location & Target: Österkälen Mineral License (100% owned), central Sweden; targeting Alum Shale mineralization associated with coincident geophysical and geochemical anomalies.
• Geophysical Anomaly: Large MobileMT conductive anomaly identified in 2025, extending approximately 8 km in length and up to 3.5 km in width; remains entirely untested by drilling.
• Program Scope & Methodology: Number of drill holes and total meters will be guided by geological observations and uraniferous radiometric measurements generated during drilling.
• 2026 Exploration Budget: Approximately 5,000 to 7,000 meters allocated across the Viken and Alum Shale Properties.
• Viken Deposit PEA Context: References June 2, 2026 Preliminary Economic Assessment for the Viken Deposit, outlining an after-tax NPV8% of US$2.88 billion, IRR of 45.9%, payback period of 2.1 years, initial capital cost of US$876 million, and average after-tax free cash flow of US$531 million per year over a 13-year mine life.
• Technical Oversight: All scientific and technical information prepared by or approved by Garrett Ainsworth, P.Geo, President and CEO, who is a Qualified Person under NI 43-101.

Notable Quotes

• Garrett Ainsworth, CEO: "We are excited to have commenced our first drill program targeting Alum Shale mineralization in Sweden. The large conductive MobileMT anomaly at Österkälen is interpreted to represent Alum Shale and has dimensions consistent with a district-scale target. By integrating geophysical, geochemical and geological datasets, we have identified a high priority target that has never been previously drill tested. This program is designed to determine whether the Österkälen target hosts the characteristics of a Viken-style mineralized system while continuing to demonstrate the significant exploration upside across our Alum Shale Properties."